THE rising number of unlicensed vendors on the island has become a concern to tackle, according to the Penang Island City Council (MBPP).
Its councillor Benji Ang proposed that MBPP provide authority to its Licensing Department to fine those unlicensed vendors.
He suggested the establishment of a Special Action Squad within the Licensing Department, which would be key to addressing the unlicensed business operations issue.
“This squad should be granted authority to seal off businesses that repeatedly violate regulations, preventing them from reopening after being fined or warned.
“This squad will have the power to seal and confiscate the premises of violators.
“It is an urgent need to enhance the law enforcement efforts, including conducting a comprehensive study and intensifying enforcement measures to ensure all vendors obtain proper licensing before conducting business,” he said.
During a recent council meeting, Ang revealed that out of the 8,007 vendors, only 5,334 had proper licenses.
“2,673 vendors are operating illegally, equivalent to 33% of vendors that lack licenses, a figure that cannot be ignored,” he said.
Ang noted that this high number of unlicensed vendors poses multiple challenges, including difficulties in law enforcement, traffic congestion, sanitation and food safety concerns, and unfair competition for licenced vendors.
“Therefore, swift and stricter measures are necessary to address this issue effectively,” he stressed.
Ang also highlighted official statistics from MBPP providing a breakdown of the active licensed business accounts:
Composite Licenses (Lesen Komposit): 7,320 accounts – the most common license category.
Retail Store Licenses in Shopping Complexes (Kedai Dalam Kompleks, KBB): 875 accounts – indicating a stable presence of businesses in commercial complexes.
Kiosk Licenses in Shopping Complexes (Kiosk Dalam Kompleks, KDK): 257 accounts – reflecting continued demand for small-scale businesses.
Ang also stressed the importance of addressing the root cause of why many vendors remain unlicensed.
He pointed to zoning regulations (Penzonan Premis) as a major issue.
“Many commercial premises do not comply with zoning laws, leading to license application rejections.”
“As a result, some vendors are forced to operate illegally to sustain their livelihood,” he said.
To resolve this, Ang urged MBPP to reassess and adjust zoning policies, ensuring they are more flexible and aligned with current business needs to ensure the issue can be resolved.
Story by Edmund Lee
photo courtesy by MBPP